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Updated over 2 years ago,

User Stats

30
Posts
21
Votes
Frank Rubino
  • Rental Property Investor
  • Boston, MA
21
Votes |
30
Posts

1031 on two family house

Frank Rubino
  • Rental Property Investor
  • Boston, MA
Posted

Here's my situation:

I purchased a two-family house in 2016 and lived in unit 1, while renting out unit 2. Then in February of this year, I moved, and started renting out unit 1 as well.

I want to sell the house and avoid taxes. I know unit 2 will qualify for a 1031 exchange as it's been rented since 2016, but what about unit 1? It's only been rented since Feb 2022. Would it make more sense to use section 121 for unit 1? 

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